To Fight Corruption, the Green Climate Fund Should Improve the Anticorruption Mechanisms in its Accreditation Process

The Green Climate Fund (GCF), which the UN created in 2010, seeks to marshal pledges of $100 billion per year by 2020 from wealthy nations (which have been disproportionately and primarily responsible for the world’s carbon emissions), as well as other private and public sources, to finance climate change mitigation and adaptation projects in developing nations, which bear the greater share of adverse effects from those emissions. Last March, the United States delivered $500 million to the GCF, the first installment of the $3 billion pledge the United States made as part of the COP 21 UN Climate Summit last December. Climate and development advocates hope that the GCF will support development that is both “low-emission” and “climate-resilient,” helping countries limit greenhouse gas emissions and adapt to impacts of climate change. The GCF operates principally through so-called “accredited entities”—private and public sector subnational, national, regional, and international entities, which will implement climate change programs using GCF funds. These entities are selected through an accreditation process (hence the name), which assesses their ability to manage resources against the GCF’s fiduciary principles, environmental and social safeguards, and gender policy. Specific projects are assessed against investment criteria, including impact potential, sustainable development potential, responsiveness to recipients’ needs, promotion of country ownership, and efficiency.

As with many humanitarian or development aid efforts, the GCF is not without corruption risks. Recognizing this, the GCF Board approved an Initial Monitoring & Accountability Framework for the accredited entities that manage and implement GCF projects. Yet the GCF should do more to ensure that its basic accreditation mechanisms themselves rigorously evaluate entities for their capacities not only to disburse climate funds but also to monitor and address corruption. This up front assessment would complement efforts to ensure that entities, once accredited, remain faithful to the Fund’s fiduciary principles. The following aspects of the GCF accreditation process raise potential corruption risks, and the GCF should take steps to address them: Continue reading

Learning from Disaster: Corruption and Environmental Catastrophe

One year ago, Typhoon Haiyan (known locally as Yolanda) struck the Philippines, claiming over 6,000 lives. In the aftermath, numerous reports emerged regarding the failure of the Philippine government to properly manage relief efforts and get foreign aid to victims. This past September, the Philippine Commission on Audit (COA) released its comprehensive–and damning–Report on the Audit of Typhoon Yolanda Relief Operations. According to the report, of the $15 million available in the Office of Civil Defense (OCD) quick response fund, and the $1 million in donations received by the National Disaster Risk Reduction Management Council (NDRRMC), not one cent was spent on the basic subsistence needs of typhoon victims, in clear violation of the statutory mandate of Republic Act 10352.

Elizabeth’s recent post highlighted some of the challenges involved in fighting corruption in a conflict zone. While a natural disaster like Typhoon Haiyan poses similar issues, the challenges–and the opportunities for effective response–differ in some important respects. On the one hand, in a natural disaster–as in a conflict situation–the chaos and breakdown of oversight, coupled with the dependence of victims on the resources, coordination, and capabilities of those in a position to provide relief creates a power imbalance that increases opportunities for corrupt actors. At the same time, although any individual natural disaster is unpredictable, the fact that such disasters will periodically occur is predictable (at least in certain disaster-prone areas), and this creates opportunities–which perhaps don’t exist to the same degree in the context of armed conflicts–to plan ahead: to take steps that can redress the potential power imbalance before the crisis occurs. Continue reading